A code city is a city operating under the operation municipal code.  An area may initially incorporate as a code city, or a city or town may later reorganize as a code city. 

There are two forms of government that a code city may operate under.  The first is a mayor-council form.  This form of government has an elected mayor as well as an elected council.  The size of the council varies based on the population of the city; generally cities with fewer than 2,500 people have a five-member council, while those with more than 2,500 people have a seven-member council.  The mayor is the chief executive and administrative officer of the city, and is in charge of all departments and employees.  The mayor can veto legislation, and can break a tied vote on the council.  Legislative power resides with the council.  

The second form of government is a council-manager form of government.  Under this form of government, councilmembers are the only elected officers.  There are generally five councilmembers in cities with fewer than 2,500 people and seven councilmembers in cities with more than 2,500.  All councilmembers are elected at large, in consecutively numbered council positions, unless the city provides for election by wards.  The council appoints a city manager, who acts as the chief executive and administrative officer.  The city manager is responsible to the council for the administration of the city.  The council may choose one of its number to act as chair.  The chair of the council has the title of mayor, and is the head of the city for ceremonial purposes.  Alternatively, when the council is elected at-large, the city council may place a measure before the voters to designate the person elected to council position one as the chair of the council, and thus as the mayor. 

The city manager does not need to live within the city at the time of appointment, but must reside in the city after appointment, unless this requirement is waived by the council.

A city may change its form of government upon a resolution of the legislative body or the filing of a petition with a sufficient number of voters, if the measure is approved by voters at an election.

A proposal to change a city's form of government to a council-manager form under the optional municipal code may be combined with a proposal to designate the person elected to council position one as chair of the council, and therefore mayor, and the combined proposal may be placed before voters as a single proposition.

A city manager does not need to reside in the city after appointment, unless such residency is required by the city council.